[Federal Register Volume 65, Number 240 (Wednesday, December 13, 2000)]
[Notices]
[Pages 77947-77948]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31680]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43680; File No. SR-EMCC-00-04]


Self-Regulatory Organizations; Emerging Markets Clearing 
Corporation; Notice of Filing of Proposed Rule Change Relating to 
Membership Criteria for Inter-dealer Brokers Regulated by the 
Securities and Futures Authority Limited

December 6, 2000.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on July 3, 2000, the Emerging 
Markets Clearing Corporation (``EMCC'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule change as 
described in Items I, II, and III below, which items have been prepared 
primarily by EMCC. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested parties.\2\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ EMCC's filing will be available for inspection and copying 
in the Commission's Public Reference Section or through EMCC.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    EMCC is proposing to amend its rules to establish membership 
criteria for brokers or dealers that act as inter-dealer brokers 
(``IDBs'') and that are regulated by the Securities and Futures 
Authority Limited (``SFA'').

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, EMCC included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. EMCC has prepared summaries, set forth in sections (A), 
(B), and (C) below, of the most significant aspects of these 
statements.\3\
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    \3\ The Commission has modified the text of the summaries 
prepared by EMCC.
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(A) Self-Regulatory Organizations' Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    Currently, EMCC's Rules only provide for U.S. registered broker-
dealers to act as an inter-dealer broker. The purpose of this proposed 
rule change is to establish admission criteria for brokers or dealers 
who are regulated by the SFA and act as IDBs. EMCC's membership 
criteria for broker-dealers acting as IDBs that are registered by the 
SFA will mirror the requirements of U.S. registered broker-dealers 
acting as IDBs except SFA regulated IDBs will be required to maintain 
``excess financial resources'' of $10,000,000 as opposed to excess net 
capital of $10,000,000.
    EMCC believes that the proposed rule change is consistent with the 
requirements of section 17A of the Act \4\ and the rules and 
regulations thereunder because the proposal should encourage IDBs' 
regulated by the SFA to become participants in EMCC and therefore 
facilitate the prompt and accurate clearance and settlement of emerging 
market securities transactions.
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    \4\ 15 U.S.C. 78q-1
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    EMCC does not believe that the proposed rule change will have an 
impact on or impose a burden on competition.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants or Others

    Written comments relating to the proposed rule change have not yet 
been solicited or received. EMCC will notify the Commission of any 
written comments received by EMCC.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    Within thirty-five days of the date of publication of this notice 
in the Federal Register or within such longer period (i) as the 
Commission may designate up to ninety days of such date if it finds 
such longer period to be appropriate and publishes its reasons for so 
finding or (ii) as to which the self-regulatory organization consents, 
the Commission will:
    (A) By order approve such proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for inspection and copying in the 
Commission's Public Reference Section, 450 Fifth Street, NW., 
Washington, DC 20549. Copies of such filing also will be available for 
inspection and copying at the principal office of EMCC. All submissions 
should refer to File No. SR-EMCC-00-04 and should be submitted by 
January 3, 2001.


[[Page 77948]]


    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-31680 Filed 12-12-00; 8:45 am]
BILLING CODE 8010-01-M